Dividend reduction/ split



  • Can see a lot of people suggesting that if dividends are split in line with the factor of the share split, it may well limit the growth that a share split could potentially have in terms of attracting new users, as payouts appear minimal.

    I don't know how ridiculous this may seem as no one seems to know FI's financial situation (although following the introduction of in-play divs, they must be raking in commission), but could they do a 4 way split on player prices but only half dividend payouts, for example, and bite the bullet now as it is likely they would have to increase dividends at some point in the future anyway? Dare to dream, why not...



  • @ID8 I’ve actually been thinking exactly the same thing. Effectively they would be doubling dividends but making players more affordable and I would imagine bring in a lot of new members. I don’t see people people buying hundreds of futures for a 1.25p dividend.



  • Cant see fi giving out hundreds of shares dirt cheap and yet paying more dividends out. They wouldnt be able to sustain that as a business model. If they split 4 ways you just have to accept needing 4 pogba shares to earn the 5p mb dividend for example. Last time it was just 5p mb payout. This time we have mb, pb, g@a.
    You could buy 10 sancho now for £60 or after split 10 for £15.. Its a psychological thing. For me, im looking at 12 months later when they raise dividends. Build your portfolio towards that goal. Back then ramos was 80p and everyone viewed it as pointless hold as he never won mb. Then they created pb as a dividend raise after the split. I am building for that moment, any mb pb g@a remains the same as long as you hold enough shares. Not sure why anyone would hold one share in a player after a split if it is 4 ways, awesome opportunity to build your portfolio significantly for the future



  • @Finlay77 I am definitely building for the future and investing as much as I can, just thought that could be a lovely additional little bonus as it would essentially act as doubling dividends for the shares you own pre share split. I'm bad when it comes to just waiting and seeing, I can't help but speculate!



  • what's more likely is that they keep G&A the same, to encourage new investment following the split as shares are only eligible for 30 days. Who knows...



  • @ID8 a few on here have mentioned it could stay the same but pb mb would have to split accordingly. Think g@a is pretty good now we have had a chance to get used to it. Commission they make would remain pretty regular, keeping it the same is a good idea



  • Personal opinion is that they will divide the divs by the same amount as they split the share value, but then round up to nearest penny.

    This will create more value at the same time, and more likely stimulate even more growth as bigger investors will see more value and invest themselves rather than just watch those with smaller budgets buying up premium players.

    Also the idea of 0.25p or 0.5p doesn’t sit well with me. To new investors the idea of buying a share that may only return 1.25p for Mb wouldn’t Be particularly enticing.

    Guess it all depends on what FI can afford to pay out.... but perhaps that’s what the whole Gand A excercise is for 🤔



  • Yeah, the dividends will split 4 ways. But then in the future they will have to raise dividends again to stimulate growth. Then they will have to split again when the shares are too expensive and then raise dividends and so it goes on ad Infinitum....well that’s the theory anyway 😉



  • @ID8 said in Dividend reduction/ split:

    what's more likely is that they keep G&A the same, to encourage new investment following the split as shares are only eligible for 30 days. Who knows...

    Think you're on the ball here with G & A. I like your idea at the top of this thread and there is half a chance, particularly as a lot of the dividends cannot be divided by 2 or 4. For example, Media dividends could simply change to 2p on a match day and to 3p 2p and 1p ob a treble media day if shares are split into quarters. So on and so forth with PB.

    The dividends will obviously get smaller but maybe not in proportion with the share split.



  • @Valhalla the problem I have with them dividing everything by 4 is that for anyone new coming in they might find players cheaper but who’s gonna come in and spend £300 buying 100 Paul pogba just for a chance at getting back a £1 dividend it just doesn’t look very appealing. I don’t know what they should do but it needs to have more reward than that or people will just go stick large lumps of cash on a single soports bet instead



  • @Black-wolf said in Dividend reduction/ split:

    @Valhalla the problem I have with them dividing everything by 4 is that for anyone new coming in they might find players cheaper but who’s gonna come in and spend £300 buying 100 Paul pogba just for a chance at getting back a £1 dividend it just doesn’t look very appealing. I don’t know what they should do but it needs to have more reward than that or people will just go stick large lumps of cash on a single soports bet instead

    I think £300 to win £1 sounds a lot better than £1200 to win £4..

    people will join the platform regardless, look at the amount of money that is pumped into players that actually cant win dividends at the moment! just shows theres very little logic in the current market and no matter what divs are there will be so many ways to win



  • @Lukeroro exactly what i'm hoping for! can't imagine FI takes much of a hit if this is the case, if anything it stimulates existing users to deposit more!



  • @Black-wolf and this is where FI need to consider the psychology of it all! Us existing users know that £300 now would only get you 25 pogba's and would still return approximately £1 in dividends for a MB win.

    Being completely honest, when i first joined about two months ago, dividends were absolutely nothing to do with my strategy. When you begin with a small deposit, the dividend payout is unattractive regardless. For example, a new user putting down £100 (which, post split, will probably be the average intial deposit for a new user) isn't gonna look at pogba and think i need to grab 25 of him so that he can win me a x amount of dividends each time he's in the media (roughly 25p post 4 factor split). A new user will more than likely think, rashford at £1 looks cheap, i like him, hes exciting, i can see him becoming big in the next year, let me buy 10 of him and trust in the growth of the platform.

    I eventually increased my deposits and shifted my focus to some of the big boys once i began to learn that yes, the market is driven by dividends. However, that is not to say that there is not money to be made elsewhere for new users, and I begin to question how important the dividend payouts really are in determining whether they deposit/how much they deposit???

    Personally, i studied graphs of the top 200 and noticed that 95% had increased in value over the past year, realised the potential of the platform and invested..... and THEN began to focus on the importance of dividends etc. I can imagine many new users will do the same.



  • @ID8 said in Dividend reduction/ split:

    @Black-wolf and this is where FI need to consider the psychology of it all! Us existing users know that £300 now would only get you 25 pogba's and would still return approximately £1 in dividends for a MB win.

    Being completely honest, when i first joined about two months ago, dividends were absolutely nothing to do with my strategy. When you begin with a small deposit, the dividend payout is unattractive regardless. For example, a new user putting down £100 (which, post split, will probably be the average intial deposit for a new user) isn't gonna look at pogba and think i need to grab 25 of him so that he can win me a x amount of dividends each time he's in the media (roughly 25p post 4 factor split). A new user will more than likely think, rashford at £1 looks cheap, i like him, hes exciting, i can see him becoming big in the next year, let me buy 10 of him and trust in the growth of the platform.

    I eventually increased my deposits and shifted my focus to some of the big boys once i began to learn that yes, the market is driven by dividends. However, that is not to say that there is not money to be made elsewhere for new users, and I begin to question how important the dividend payouts really are in determining whether they deposit/how much they deposit???

    Personally, i studied graphs of the top 200 and noticed that 95% had increased in value over the past year, realised the potential of the platform and invested..... and THEN began to focus on the importance of dividends etc. I can imagine many new users will do the same.

    Yes this is pretty much my plan - and I joined yesterday!

    I've started off with a smallish bank (£300) and I've invested in mostly young prospects for the value, a couple of v. cheap wildcards, and a few big players to see how their value goes before I make future decisions.

    I'm not thinking about dividends yet - that will be a nice little bonus. But in a couple of months I'm sure I'll be more strategic.



  • @kristiang85 I rest my case! I'm glad to hear it and I hope you succeed! I think players around the £4 mark for a £300 investment are perfect for you at this stage. Good luck!



  • @ID8 Thanks! Yes that's the price range I've been looking at for my long-term established player investments.



  • @kristiang85 if you feel you could afford too, now would be a great time to invest more before the share split, winter period for the Prem and jan transfer window... in terms of buying players from europe's other top leagues, hold fire until they go on their xmas breaks as a lot of people will sell them to invest elsewhere, reducing their prices! Hope this helped!



  • @ID8 said in Dividend reduction/ split:

    @kristiang85 if you feel you could afford too, now would be a great time to invest more before the share split, winter period for the Prem and jan transfer window... in terms of buying players from europe's other top leagues, hold fire until they go on their xmas breaks as a lot of people will sell them to invest elsewhere, reducing their prices! Hope this helped!

    Yes I can invest more, if you think that's a good idea.

    Do you mean go for prem players now, then wait on European players until around Dec/Jan?



  • @kristiang85 If I was honest I personally wouldnt put too much money in until you are completely up to speed with player prices and what drives the market.

    @ID8 is spot on though, the winter break in the European leagues might mean a slight drop off in players especially from the bundesliga as they have a long break - this would be a good time to get on them! on the flip side theres a lot of prem games over the christmas period so more chances to 'win' on those players.

    just remember a good player in the real world doesn't necessarily mean they will do well on FI (its usually a pretty solid guide though!)

    You will learn a lot in your first few weeks/months and start to trade a lot smarter, chances are you will buy some duds early though.. we all do!

    Spread your risk across players from different (top 5) league, different positions and different prices and you wont go far wrong



  • @Wilba Great thanks, yep I'm pretty risk adverse so happy to wait before diving in.
    Cheers all! :)


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